Corporate profits hit record high; still no hiring
“The nation’s workers may be struggling, but American companies just had their best quarter ever.
American businesses earned profits at an annual rate of $1.66 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or non-inflation-adjusted terms.
Corporate profits have been going gangbusters for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history.”
I know what you’re thinking: You want to see a chart.
OK, here.
I still know what you’re thinking: If only President Obama and the Democrats weren’t so darned anti-business. If only corporate America was making enough money to pump back into the economy. If only we could free up business and make it possible to earn a profit again.
If only ….
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526 comments Add your comment
Normal
November 24th, 2010
6:59 am
…and the day Genesis died…
http://www.history.com/this-day-in-history/origin-of-species-published
TnGelding
November 24th, 2010
7:08 am
Joel Edge
November 24th, 2010
5:59 am
They’re out there; just being filled by legal immigrants on work visas:
http://www.myvisajobs.com/Top_Visa_Sponsors.aspx
Wee Johnny Dixiecrat:
I don’t think you’re an idiot or I wouldn’t spend time trying to enlighten you, but please, get a clue before I change my mind.
LeeS
November 24th, 2010
7:10 am
There seems to be a general mantra that someone can just go out, open a new small business and automatically hire 50 people. Where is the logic with that right now? A new emerging business entering into a market that more than likely has no demand for goods under existing consumer buying habits? I’m saying that traditionally across a wide range of businesses that would serve an average wide range potential of existing of markets in the US, you’re going to find very little in the way of an ability to open a small business and have the doors stay open after a short cycle.
Most people who are employed are living on little, trying to clear debt, and saving at higher rates. Or should I say, whatever they have left to save. Regulation in small business???? What regulation??? Is Wall Street small business???? FBI agents are raiding offices of Wall Street companies dealing with insider trading??? Is that regulation that causes uncertainty???? If so, does that mean we shouldn’t have a set of laws to enforce????
This whole argument gets so convoluted, because we think that high income Wall Street execs will trickle down the record earnings. Warren Buffet will rebuke that argument in one second. With that said, wait and see how many people say Warren Buffet doesn’t know what he is talking about.
why is the trickle down yellow?
November 24th, 2010
7:22 am
Joel Edge@5:59 am
“If only we could free up business and make it possible to earn a profit again.”
We did. Everybody remember free trade, high tech jobs, it takes a village, etc. Thanks to our political leadership, business is now free to make a profit without us.
Just waiting on all them high tech jobs.
———————————————-
You waited too long, they are now in India and China
stands for decibels
November 24th, 2010
7:33 am
Unemployment was never as high under our President Bush
yawn. this again?
Blame a President or don’t blame a President for economic indicators, I don’t much care what some online jackass might say.
But the fact remains that the job hemorrhaging mostly occurred under Bush. By the time we finally stopped losing hundreds of thousands of jobs per month, and the DoL claims were compiled, we started seeing this (unacceptably) high percentage of workers unemployed.
stands for decibels
November 24th, 2010
7:35 am
…and you guys do understand that even if we gain something like a hundred thousand or so jobs per month (I forget what the exact replacement number is, but it’s in that neighborhood), that isn’t going to budge the percentage of unemployed down, right? because you have population growth and new people coming of age and entering the job market all the time?
TaxPayer
November 24th, 2010
7:35 am
Our local restaurants keep lots of manufacturing jobs filled (as someone else pointed out, Bush reclassified burger assembly as a manufacturing position) and if it were not for that minimum wage nonsense, they’d be hiring twice as many folks and probably throwing in nearly free mini-meds as an incentive. Now don’t that just give new meaning to “serviced with a smile.”
John Galt Jr.
November 24th, 2010
7:40 am
Has it occurred to any of you idiots that the companies are sitting on their profits until they actually see where they land with the new health care regs and taxes? THAT is a direct result of hope and change.
Normal
November 24th, 2010
7:42 am
Has it occured to you that companies are sitting on their profits because it’s better for them and that they don’t giva a damn about the American Worker?
why is the trickle down yellow?
November 24th, 2010
7:44 am
Many out here are saying to start a small business – doing what?
Service type small business have been in place for years now (landscaping, lawn maintenance, maid services, etc). These fields are too competitive (too many companies for too few contracts available) so the pie would be further divided.
Individual services (Independant IT contractor). How to compete with the H1b visa holders. The recruiting companies for H1b visa rent apartments in large cities where contract work is to be found. (companies then deduct the rent from the rate charged to the company for the contract and place 2 contractors per bedroom). The h1b visa holder then is able to take $25 hr since all their expenses are paid. How does the Independant IT contractor compete. HE DOESN’T, therefore he is out of work for the majority of each year.
Small businesses that sell a product (who is their market). Until demand increases they are out of luck. Until people are working again anything other than basic food and shelter is a luxury. We have had 10 years of tax cuts. Is YOUR life BETTER or WORSE?
I know mine was better before Bush came into office. AT least there was work to be found in the IT field before Bush and company allowed the H1b visas to continue and American companies to ship jobs offshore
Normal
November 24th, 2010
7:46 am
Good Luckovich this morning…
TnGelding
November 24th, 2010
7:49 am
John Galt Jr.
November 24th, 2010
7:40 am
And they appreciate you providing them that cover.
Since some that hang out here like to point out JFK reduced taxes, let’s go back to those rates. And the GOP wants to go back to the spending levels of 2008, ignoring that most of the increases since then are only temporary stop gap measures. Why not go back to 2000, or 1992?
stands for decibels
November 24th, 2010
7:50 am
as someone else pointed out, Bush reclassified burger assembly as a manufacturing position
I’m thinking that’s something of an urban legend. In 2004, buried deep in a report, a Bush official made the case that this should be counted as a manufacturing job, but I don’t think they actually did.
anyway, per the current DoL page:
http://www.bls.gov/iag/tgs/iag72.htm
a quick scan reveals that’s still likely counted as part of “Accommodation and Food Services: NAICS 72″
Normal
November 24th, 2010
7:50 am
Well, since tomorrow is Thanksgiving, we can be thankful that ,at least, our GOP leaders helped extend the unemployment benefits…Oh! Wait!…nevermind….
stands for decibels
November 24th, 2010
7:51 am
Has it occurred to any of you idiots
Nobody who worships Ayn Freaking Rand has any business calling another person an “idiot.”
TnGelding
November 24th, 2010
7:51 am
Normal
November 24th, 2010
7:46 am
You could say that every morning. And Good Morning to you!
stands for decibels
November 24th, 2010
7:52 am
Oh, and “John”, please, please, do “go Galt” on us.
There’s a good lad.
TaxPayer
November 24th, 2010
7:53 am
Senator Inhofe has come out of the closet long enough to give us yet another glimpse inside the mind of a truly disturbed individual. He’s accusing Republicans that have spoken out against earmarks of being brainwashed. This coming from a “man” that would deny, out of pure spite, that he has broken a sweat even whilst roasting on a spit in hell. Have a Koch and a smile.
Ragnar Danneskjöld
November 24th, 2010
7:59 am
Dear Jackie @ 4:02, your question is better than you realize, “what will the companies do with those unproductive assets? how will they maintain and grow their market share?; how will they grow their Return On Investment?” As I suggested in my pithy post, the corporations await a favorable business environment. If they do not find it in the US, that does not mean they will not find it.
Dear Nice Guy @ 4:26, thanks, you obviously get it.
Dear someone named Bye Bye @ 10:15, “Because, I think that if the American corporations are having their best quarter ever while we have unemployment rates at outrageous levels, then that means we need a slight rejiggering of our perspectives here. Maybe if crowds of people were to start gathering outside said corporations’ facilities reminding them of their presence. What’s that you say? The police would chase them away? ” We would agree that leftists believe the only purpose for business is to bribe the raging masses into domestic tranquility, much as they pay off Rev. Jackson. That does not jibe with reality, but if conforms to leftist justice.
TaxPayer
November 24th, 2010
8:00 am
as someone else pointed out, the Bush administration attempted and may have even succeeded to reclassify
reclassifiedburger assembly as a manufacturing positionThere. Even though you did not dis-prove the original…
Normal
November 24th, 2010
8:02 am
G’Morning, Tn…
Hope all is well with you.
grading bookman
November 24th, 2010
8:22 am
The chart seems to point to one thing: outsourcing works for Citizen Corporation.
Our earnestly-industrious Founding Fathers were proudly pro-business, so they did not use pseudonyms when they signed the philatelist-inspired Declaration of Independence and risked the necktie-party with the business-unfriendly King. (RSVP!) Today, fairly-lazy, yet cunning Darjeelingists’ backlash against Barack Obama is a barometer of the back-to-the-future, deja-vu view that lazze-faire economic policy, even it if results in catastrophe,(Bear Sterns et al), provides more growth and security.
The democrats have to understand that experiments in entitlements like Mao’s Cultural Revolution are as effective as Moe, Larry and Curly’s foray into High Society in episode 39: Everyone involved ended up with pie on their face. Thus socialism’s entitlementalists have no viable alternative but to duck, (saucily)..
We are stuck with unbridled capitalism and the accompanying wars that will ultimately destroy us. The point here is that if we nuke Korea and Iran now we probably will win, with maybe 20 million Americans and Allies killed, 50 million tops. But we have to strike now, today.
The bombing will begin in five minutes.
Think of the growth.
Swede Atlanta
November 24th, 2010
9:01 am
No doubt small businesses that project revenue and cash flow on a rolling monthly or quarterly basis are holding onto whatever cash they have until they understand what the tax and regulatory climate will be like going into 2011.
But large corporations that are already making billions in profits they can, and do, make allowances for a changing business climate. I know beacuse annually we prepare at least 3 budgets that take into account the overall business environment, competition and tax/regulatory considerations.
I do not for one believe large companies (that many in the GOP classify as small businesses for purposes their don’t tax the rich mentality)are driven primarily by tax/regulatory considerations. They make allowances for them and if there is still money to be made they invest.
For small and large businesses today the real uncertainty is when will demand come back. It is a bit of the chicken and the egg. No one company or industry is willing to jump into the pool and hire in hopes that others will follow. They are all waiting on one another to make the first move. Only when demand in the form of consumer spending combined with dropping unemployment figures will most businesses invest. They don’t need more workers if there are no buyers for their goods and services.
Scooter (The Original)
November 24th, 2010
9:30 am
Golly Jay, perhaps it is because they all wrote down the huge expenses they are going to see as a result of Obama’s lowering of medical costs. Keep the rage focused on the job creators and deflected from the politicians, that’s a winning proposition.
tommytwotone1
November 24th, 2010
10:05 am
Jay, this is where you and other libs are totally clueless when it comes to business.
A business only has to hire if they NEED people to fill a position. They don’t just hire for the heck of it, just because all this money is laying around. There still has to be work for someone to do.
Businesses exist to make a profit, not create jobs. Get over it and move on with your sad pathetic self. Life ain’t fair, champ.
Adam
November 24th, 2010
12:45 pm
John Galt Jr. – Has it occurred to any of you idiots that the companies are sitting on their profits until they actually see where they land with the new health care regs and taxes? THAT is a direct result of hope and change.
So what you’re saying is, no companies will hire until after 2014? Despite continuing profits and sales?
dB – Nobody who worships Ayn Freaking Rand has any business calling another person an “idiot.”
Critical Hit! Massive Damage! (Well said btw!)
tommytwotone1: Businesses exist to make a profit, not create jobs. Get over it and move on with your sad pathetic self. Life ain’t fair, champ.
Well they sure won’t continue to see profits if people keep not having jobs in this country. Where will the money come from to purchase their goods and services?